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The Corporation Clear Vistas Development Corporation (“CVDC”) is incorporated in the province of British Columbia and majority owned by a TSX listed public company Eyelogic Systems Inc. (TSX-EYE.A) The Business of CVDC: The primary business of CVDC is to raise funds from investors for the purpose of acquiring limited partnership units in Clear Vistas Community #1 Limited Partnership (“Clear Vistas LP”). As such, CVDC becomes a limited partner of Clear Vistas LP with all prorated (according to funds provided) entitlements to the revenue distributions from Clear Vistas LP. After expenses and corporate taxes, this revenue is distributed to the investors of CVDC. Clear Vistas LP is a 730 acre residential development of farm land surrounding the Saskatchewan communities of White City and Emerald Park, 10 kilometres east of Regina. As of October 15, 2008, 660 acres of the above farm land will have been acquired by Clear Vistas LP for the purpose of the planned residential development. The Investment in CVDC: Eligible investors in CVDC are invited to purchase combined units by way of Offering Memorandum. These combined units (“unit”) consist of one bond and one share for the aggregate price of $100 per unit. The bond portion of the unit is a RRSP eligible investment with a 10 year term to maturity paying annual interest of five percent (5%). The allocated price of the bond portion per unit is ninety-nine dollars and ninety cents ($99.90). The share portion of the unit is a common share that is non-voting but eligible to participate in any and all dividend distributions from CVDC. The allocated price of the share portion per unit is ten cents ($.10). Investor Options: The combined unit investment in CVDC allows the investor greater flexibility to structure their investment holdings in the most tax efficient manner given their current situation. The following table provides a brief overview of the key planning attributes of holding the bond and share portion of the CVDC investment separate and distinct:
* Share payment and ownership can be allocated to family members to provide flexible profit participation. Recent amendments to the Income Tax Act of Canada allow Canadian investors 18 years of age or older with a S.I.N. to open a TFSA. TFSA are accounts that allow interest, dividends, and capital gains on eligible investments to be tax free beginning in 2009. Maximum contribution to the TFSA in 2009 is $5,000 per year (indexed). There is no cap on the amount of tax free income generated by the eligible investment and the attribution rules do not apply to any contribution from family members. Withdrawals are at the discretion of the account holder with no penalty provisions. TFSA’s must be held in designated financial institutions or trust companies. Service Providers: The Corporation has engaged the following as service providers: Pacific Shores Financial Corporation Olympia Trust |
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